Jaguar Mining Reports 20,029 Ounces Produced In Fourth Quarter Continues Sustainable Gold Production Growth Pays Down 100% of Gold Loan __________________________________________________________________________________________
NEWS RELEASE
January 14, 2020 TSX: JAG
FOR IMMEDIATE RELEASE
Jaguar Mining Reports 20,029 Ounces Produced In Fourth Quarter
Continues Sustainable Gold Production Growth
Pays Down 100% of Gold Loan
__________________________________________________________________________________________
Toronto, January 14, 2020 – Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) today announced
interim production results for the fourth quarter of 2019 (“Q4 2019”). The Company is pleased to announce that it
continues to achieve strong operational performance s and sustainable gold production growth at the Pilar Gold
Mine (“Pilar”) and Turmalina Gold Mine (“Turmalina”) located in Minas Gerais, Brazil. Financial results for Q4 2019
will be reported and filed on SEDAR on or before March 20, 2020. All figures are in US Dollars, unless otherwise
expressed.
Q4 2019 Operating Highlights
Vern Baker, CEO, commented, “Jaguar is delighted to be able to report continuing progress toward our goal of
100,000 ounces per year with steady production increases quarter -over-quarter. Both Pilar and Turmalina mines
continued producing mined tonnes at sustainable levels , as well as development metres at levels well above
sustainable levels, allowing us to continue forecast ing improved future production levels. Our sustainable
production improvement was matched by safety performance with no lost-time accidents occurring in Q4 2019.”
• Q4 2019 witnessed the third consecutive quarter of sustainable production growth: consolidated gold production
increased by 18% with 20,029 ounces produced compared to 17,044 ounces in Q4 2018, and increased 4%
and 9% compared with Q3 and Q2 production, respectively, and increased 22% from Q1 production levels;
• Pilar gold production increased 10% with 10,255 ounces produced compared to 9,301 ounces in Q4 2018;
• Turmalina gold production increased 26% with 9,774 ounces produced compared to 7,743 ounces in Q4 2018;
• Total development metres increased 52% to 2,27 8 metres compared to 1,508 metres in Q4 2018 ; and
decreased 10% from 2,527 metres in Q3 2019;
• A total definition, infill and exploration drilling campaign achieved 12,196 metres in Q4 2019, as two additional
rigs were mobilized at both operations to continue expanding the resource envelope;
• Strong liquidity as at December 31, 2019, with a cash and unsold bullion balance of $11.7 million, as compared
to $12.2 million of cash and unsold bullion on September 30, 2019;
• By the end of Q4 2019, Jaguar paid down 100% of its outstanding gold loan to Auramet. The repayment of the
loan provides more liquidity to the balance sheet and cash flow for 2020; $1.1 million in finance payments were
made during Q4 2019; the Company’s remaining debt of $4 million is now comprised of a number of short-term
loans from Brazilian banks.
Vern continued: “Both mines continue to demonstrate the ability to handle the level of tonnes and development
metres needed to be sustainable operations. While limitations on stoping options kept average mill head grades
lower, development rates are now opening up options at both mines, and we expect to see the realized grades
increasing over the next several quarters. At Turmalina, mining in the A12 block was initiated at the end of
December, providing access to the mine’s better grade reserves and a mining area that will be sequenced into the
mine plan. Overall ore tonnes and grade at Turmalina continue to be restricted by developed stope availability. Pilar
head grades were limited by a stoping sequence that included several lower grade blocks. Pilar also initiated work
on a new level with blasting of the first stopes on the 12 Level of the mine and expects to see grades moving back
to reserve levels.”
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JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
The table below summarizes the gradual improvements of our consolidated operations for the 2019 financial year.
Fourth Quarter Comparative Operating Results
Q1 Q2 Q3 Q4 FY1
Tonnes milled (t) 160,000 184,000 208,000 214,000 767,000
Average head grade (g/t) 3.59 3.48 3.30 3.32 3.41
Recovery % 87.7% 88.6% 87.8% 87.9% 88.0%
Gold ounces
Produced (oz.) 16,364 18,366 19,324 20,028 74,082
Sold (oz.) 16,821 18,598 17,417 21,060 73,897
Primary Development (m)
Turmalina 573 783 1,001 936 3,293
Pilar 588 569 515 517 2,189
Secondary Development (m)
Turmalina 321 330 436 455 1,542
Pilar 310 369 575 370 1,624
1. Totals may not add due to rounding differences
2019Quarterly Summary
Turmalina Pilar
Roça
Grande Total Turmalina Pilar
Roça
Grande Total
Tonnes milled (t) 334,000 433,000 - 767,000 322,000 365,000 12,000 699,000
Average head grade (g/t) 3.46 3.37 - 3.41 3.55 3.92 2.54 3.73
Recovery % 89.7% 86.7% - 88.0% 90.4% 88.8% 89.2% 89.5%
Gold ounces
Produced (oz) 33,400 40,682 - 74,082 33,261 40,918 870 75,048
Sold (oz) 33,467 40,429 - 73,897 32,838 40,798 894 74,530
Development
Primary (m) 3,293 2,189 - 5,482 2,674 1,895 - 4,569
Secondary (m) 1,542 1,624 - 3,166 1,106 1,365 - 2,471
Definition, infill, and exploration
drilling (m) 20,535 14,323 - 34,858 29,012 12,501 697 42,210
2018
Annual Summary
2019
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JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
The following graphs demonstrate Jaguar’s steady trend back to sustainability compared to previous quarters.
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JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
2020 Guidance
The Company is also pleased to disclose expected production and cost guidance for the financial year 2020.
Vern commented on the Company’s outlook : “Jaguar is moving into 2020 with confidence and in a much stronger
operating position than over the past few years . We continue to build on our excellent operating teams at both
operations and have stayed the course in the e xecution of our sustainable plan s during some very difficult and
challenging quarters. The corporate structure is now lean and able to make appropriate decisions quickly. We
expect to continue to improve across all sectors over the next year, and we look forward to reaching and reporting
on sustainable 100,000 gold ounce production levels in the near futur e. It is management’s belief that we will
continue to improve across all sectors over the next two quarters and we expect to be at our sustainable production
rate within the second half of 2020. We would like to thank our shareholders for their ongoing support. We now
have a robust cash balance, and we expect Jaguar to be in a positive free cash flow position this financial year.”
Exploration Status Update
In Q4 Jaguar not only continued its in-house diamond drilling program to maintain and extend reserves but initiated
an expansion of its exploration program. Within the quarter two contractor drills were mobilized and began drilling.
One drill in each mine. These drills are focused on exploration targets to expand the resource base and test new
opportunities at each mine. Jaguar´s drive for sustainable production continues with this increased expenditure on
exploration. Commitments for exploration in 2020 are significantly higher than 2019, and Jaguar expects to pursue
geologic opportunities identified by its core geology team over the last year.
Corporate Update
The Company also announces the resignation of Mr. Robert Getz from the Board of Directors. Rodney Lamond,
Chairman of Jaguar Mining , commented, “Robert’s growing commitments to other professional endeavours was
the basis for his decision to resign. We thank Robert for his invaluable contributions to the Board since 2016. This
resignation also aligns with the Company’s strategy to reduce the number of total Board members, and therefore
Jaguar will not be filling this vacancy”.
Qualified Persons
Scientific and technical information contained in this press release has been reviewed and approved by Jonathan
Victor Hill, BSc (Hons) (Economic Geology - UCT), FAUSIMM, Senior Expert Advisor Geology and Exploration to
the Jaguar Mining Management Committee, who is also an employee of Jaguar Mining Inc., and is a "qualified
person" as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101").
The Iron Quadrangle
The Iron Quadrangle has been an area of mineral exploration dating back to the 1 7th century. The discovery in
1699–1701 of gold contaminated wi th iron and platinum -group metals in the southeastern corner of the Iron
Quadrangle gave rise to the name of the town Ouro Preto (Black Gold). The Iron Quadrangle contains world -class
multi-million-ounce gold deposits such as Morro Velho, Cuiabá, and São B ento. Jaguar holds the second largest
gold land position in the Iron Quadrangle with just over 25,000 hectares.
Gold production (ounces) 84,000 94,000
Cash operating costs (per ounce sold) $700 $800
All-in sustaining costs (per ounce)1 $1,075 $1,200
1. FX rate R$4.0 BRL = $1 USD
Consolidated
Range
Production & Cost Guidance
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JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
About Jaguar Mining Inc.
Jaguar Mining Inc. is a Canadian -listed junior gold mining, development, and exploration company operating in
Brazil with two gold mining complexes and a large land package with significant upside exploration potential from
mineral claims covering an area of approximately 64,000 hectares. The Company's principal operating assets are
located in the Iron Quadrangle, a proli fic greenstone belt in the state of Minas Gerais and include the Turmalina
Gold Mine Complex and Caeté Mining Complex (Pilar Mine and Caeté Plant). The Company also owns the
Paciência Gold Mine Complex, which has been on care and maintenance since 2012. The Roça Grande Mine has
been on care and maintenance since April 2018. Additional information is available on the Company's website at
www.jaguarmining.com.
For further information, please contact:
Vern Baker
Chief Executive Officer
Jaguar Mining Inc.
416-847-1854
Hashim Ahmed
Chief Financial Officer
Jaguar Mining Inc.
416-847-1854
Forward-Looking Statements and Cautionary Notes
Certain statements in this news release constitute "forward -looking information" within the meaning of applicable
Canadian securities legislation. Forward -looking statements and information are provided for the purpose of
providing information about management's expectations and plans relating to the future. All of the forward -looking
information made in this news release is qualified by the cautionary statements below and those made in our other
filings with the securities regulators in Canada. Forward -looking information contained in forward -looking
statements can be identified by the use of words such as "are expected," "is forecast," "is targeted," "approximately,"
"plans," "anticipates," "projects," "anticipates," "continue," "estimate," "believe" or va riations of such words and
phrases or statements that certain actions, events or results "may," "could," "would," "might," or "will" be taken,
occur or be achieved. All statements, other than statements of historical fact, may be considered to be or includ e
forward-looking information. This news release contains forward-looking information regarding, among other things,
expected sales, production statistics, ore grades, tonnes milled, recovery rates, cash operating costs,
definition/delineation drilling, th e timing and amount of estimated future production, costs of production, capital
expenditures, costs and timing of the development of projects and new deposits, success of exploration,
development and mining activities, currency fluctuations, capital requirements, project studies, mine life extensions,
restarting suspended or disrupted operations, continuous improvement initiatives, and resolution of pending
litigation. The Company has made numerous assumptions with respect to forward -looking information co ntained
herein, including, among other things, assumptions about the estimated timeline for the development of its mineral
properties; the supply and demand for, and the level and volatility of the price of, gold; the accuracy of reserve and
resource estimates and the assumptions on which the reserve and resource estimates are based; the receipt of
necessary permits; market competition; ongoing relations with employees and impacted communities; political and
legal developments in any jurisdiction in which the Company operates being consistent with its current expectations
including, without limitation, the impact of any potential power rationing, tailings facility regulation, exploration and
mine operating licenses and permits being obtained and renewed and/ or there being adverse amendments to
mining or other laws in Brazil and any changes to general business and economic conditions. Forward -looking
information involves a number of known and unknown risks and uncertainties, including among others: the risk of
Jaguar not meeting the forecast plans regarding its operations and financial performance; uncertainties with respect
to the price of gold, labour disruptions, mechanical failures, increase in costs, environmental compliance and
change in environmental legislation and regulation, weather delays and increased costs or production delays due
to natural disasters, power disruptions, procurement and delivery of parts and supplies to the operations;
uncertainties inherent to capital markets in general (including the sometimes volatile valuation of securities and an
uncertain ability to raise new capital) and other risks inherent to the gold exploration, development and production
industry, which, if incorrect, may cause actual results to differ materially from tho se anticipated by the Company
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JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
and described herein. In addition, there are risks and hazards associated with the business of gold exploration,
development, mining and production, including environmental hazards, tailings dam failures, industrial accidents
and workplace safety problems, unusual or unexpected geological formations, pressures, cave -ins, flooding,
chemical spills, procurement fraud and gold bullion thefts and losses (and the risk of inadequate insurance, or the
inability to obtain insurance, to cover these risks). In addition, t he Company’s principal operations and mineral
properties are located in Brazi l and there are additional business and financial risks inherent in doing business in
Brazil as compared to the United States or Canada. In Brazil, corruption represents a challenge requiring extra
attention by those who conduct business there. Corruption does not only occur with the misuse of public,
government or regulatory powers, it also can occur in a business's supplies, inputs and procu rement functions
(such as illicit rebates, kickbacks and dubious vendor relationships) as well as the inventory and product sales
functions (such as inventory shrinkage or skimming). Employees as well as external parties (such as suppliers,
distributors and contractors) have opportunities to commit theft, procurement fraud and other wrongs against the
Company. While corruption, bribery and fraud and theft risks can never be fully eliminated, the Company reviews
and implements controls to reduce the likeliho od of these events occurring. The Company’s present and future
business operations face these risks. Accordingly, for all of the reasons above, readers should not place undue
reliance on forward-looking information.
For additional information with respect to these and other factors and assumptions underlying the forward -looking
information made in this news release, see the Company's most recent Annual Information Form and
Management's Discussion and Analysis, as well as other public disclosure documents that can be accessed under
the issuer profile of "Jaguar Mining Inc." on SEDAR at www.sedar.com. The forward -looking information set forth
herein reflects the Company's reasonable expectations as at the date of this news release and is subject to change
after such date. The Company disclaims any intention or obligation to update or revise any forward -looking
information, whether as a result of new information, future events or otherwise, other than as required by law. The
forward-looking information contained in this news release is expressly qualified by this cautionary statement.